Economy of the common good

advantages of the economy for the common good

Private interests are below general interests. Cooperation is better than competition. Putting people and their rights before capital, minimizing the ecological impact, democratizing corporations, promoting participatory democracy... the common good calls for a more ethical and human approach to the economy. These are some of the foundations on which a economy for the common good, which seeks social welfare more than capital or money.

In this article we are going to tell you what the economy for the common good is, what are its characteristics, principles, objectives and much more.

What is the economy of the common good

economy of the common good

The economy for the common good is an innovative and valuable approach that seeks to transform the way we understand and practice the economy. It focuses on the fundamental principle that the ultimate purpose of the economy is not simply to maximize individual benefits, but contribute to collective well-being and promote ethical and social values.

In contrast to the traditional approach, which focuses on competition and short-term economic profit maximization, the economy for the common good seeks to establish a new economic paradigm based on cooperation, sustainability, and social justice. Its goal is to build an economy that generates prosperity and quality of life for all members of society, while respecting and protecting the environment.

A key aspect of the economy for the common good is the change in business success indicators. Instead of relying solely on economic benefits, it is proposed to use broader indicators that reflect the social and environmental impact of companies. These indicators include aspects such as salary equity, respect for human rights, transparency and democratic participation.

In addition, the economy for the common good promotes the idea that companies must act as responsible and ethical actors in society. Companies are expected to take responsibility for their impacts and seek to generate benefits not only for their shareholders, but also for employees, suppliers, customers and the community at large.

To promote this vision of the economy, The economy for the common good proposes a set of tools and practical measures. These include the preparation of balance sheets for the common good, which evaluate the performance of a company based on ethical and social criteria, and the introduction of tax and legal incentives that favor socially and environmentally responsible companies.

solidarity finance

business competition

This socioeconomic, democratic and political movement against capitalism, for example, promotes banking for the common good. Public welfare banks do not provide interest to depositors and do not distribute profits to owners. Green banks favor green companies and green products. Public good economics pursues the public good by taking a holistic approach. For green products to be available to the majority of people, they must be less expensive than products from companies that actively protect the environment and human rights.

Therefore, policies aimed at the common good and ecological sustainability are crucial. Green companies deserve legal advantages that facilitate their expansion. At the same time, corporations that are detrimental to the community must pay taxes.

To quantify the welfare of the national economy, we should not use Gross Domestic Product as a unit of measure, but the Product of the Common Good, also known in Bhutan as the National Happiness Index.

The Sustainable Economic Well-Being Index (IBES) is an indirect measure of the economic balance of social well-being. This economic measurement system is not new, but a product of the last century. The gross domestic product is modified according to a series of factors that affect the sustainable well-being of society.

The Common Good Balance (BBC) is used to measure the morality of companies. Positive balance sheet results should translate into tax benefits, tax reductions, better access to ethical global markets, tiered rates, public procurement priorities and access to aid.

All economic activity must be aimed at well-being, the satisfaction of social needs and the promotion of human dignity. The success of companies must be measured by their contribution to the common good. Let's not forget that, according to our Constitution, money is not the object of the economy.

Matrix of the economy for the common good

resource production

The Common Good Matrix, also known as MBS, is a double-entry table presentation that provides a concise and quantified representation of a company's or organization's adherence to the indicators outlined by EBC. Additionally, it quantifies certain socially harmful criteria and the corresponding level of their practice.

When making a standard MBS submission, you typically establish several rows, each of which corresponds to one of the company's five main contact groups: suppliers, sponsors, employees, customers/competitors and the social environment. An additional row is also included, with subrows dedicated to negative indicators that require penalty. These indicators include unequal wages between male and female employees, human rights violations, and price dumping practices.

For its part, five columns are used to represent the fundamental values ​​defended by the Economy for the Common Good: Human Dignity, Solidarity, Ecological Sustainability, Social Justice and Democratic Participation and Transparency.

When the five contact group rows interact with the previous five columns, a grid of up to twenty-five components, known as criteria, is generated (typically only seventeen are used, resulting in one criterion for each of the contact groups). contact information for suppliers and financiers). Each criterion is assigned a predetermined maximum weight. The total sum of the maximum positive weights corresponds to 1.000, a convenient reference point, while the total sum of anticipated sanctions amounts to 2.700 points.

Versions of the matrix may vary in the level of detail presented in their rows or columns and in how they weigh individual criteria, such as the importance of worker contact groups or ecological sustainability. To ensure uniform quantification, practice manuals may offer multiple compliance scenarios for each criterion, ranging from beginner to exemplary levels, with the highest score given to the latter.

I hope that with this information you can learn more about the economy for the common good, its characteristics and objectives.

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